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Innovation

Venture Capital Venture Capital

Venture Capital Falls With
Economic Cycle

Financial capital is important to company growth. Venture capital is especially important to young companies, particularly those producing an innovative product. Arizona ranks among the middle of the states on the amount of venture capital invested and in the number of deals. Both figures continued to decline in 2008 from the 2006 peak.

Arizona Innovation

“ Investments [nationally] in 2008 represented an 8 percent decrease in dollars and a 4 percent decrease in deal volume from 2007. ” - PricewaterhouseCoopers / National Venture Capital Association MoneyTreetm Report

In the 21st century, innovation — introducing something new —mostly derives from technological advances. Innovation drives the modern economy, leading to gains in productivity and prosperity. In order for a community to realize such gains, it must provide a foundation for innovation.

The foundation includes a strong educational system, a solid physical infrastructure, a base of research and development activities, innovator access to financial resources, and other factors. Science and engineering — in the educational system and in the workforce — are of particular importance.

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